The idea of cryptocurrency’s union with major financial institutions took another major step forward with the announcement that Morgan Creek Digital has initiated the launch of a $40 million cryptocurrency venture fund which will be supported by two prominent public funds. This recent development will mark the first-ever involvement of U.S. pension funds in the virtual currency ecosystem.

Anthony Pompliano, the founder of Morgan Greek Digital recently made the announcement on social media. He tweeted,

Source: Twitter

According to the announcement, the two largest investors in the multi-million cryptocurrency fund are the Fairfax County Employees and Fairfax County Police Pension Plans.
The two pension funds manage an asset portfolio with a combined net worth of a whopping $1.2 billion dollars. They have also become the first public retirement fund to invest in virtual assets, setting a new milestone in the crypto industry.

According to reports, the importance of these two public pension funds taking this huge step forward can potentially have profound ramifications for the cryptocurrency ecosystem.

Even though there is no public disclosure of the investment terms, Anthony Pompliano did clearly hint that the fund will be for a legitimate special purpose vehicle [SPV]. The reports further indicated that apart from equity investments in crypto-based companies, the fund will retain a portion of its value in major cryptocurrency, favourably Bitcoin.

The rumour mills regarding public pension funds becoming lenient towards the idea of investing in virtual assets started circulating when CNBC news announced the possibility in April of last year.

The founder of Morgan Creek Digital also rallied public pensions to invest and promote the idea of blockchain space with a blog, in which he indicated that Bitcoin has the potential and capability to save the US from its forthcoming pension issues which he termed as an “impending US pension crisis.”

Talking about institutional interest in the industry at a recent Bloomberg interview, he mentioned,

“There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable. The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns.”

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

I am a believer of the HODL philosophy because we are still in the nascent stage of blockchain technology. Although we are in a bear market now, my outlook on the adoption and growth of blockchain solutions remains unchanged. Blockchain transactions has been growing exponentially and demand for cryptocurrency like Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Litecoin [LTC] and other Altcoins will only continue to grow exponentially in the next five to ten years.

Related Articles

Ripple’s expansion remains unstoppable and has now the company behind XRP managed to conquer Israeli territory after closing a significant deal with GMT in an effort to boost the financial industry in the region and consolidate Ripple’s domination of the market. According to a public announcement published by GMT, both companies share similar business philosophies, Read more…

The cryptocurrency bear market has had a domino effect on not only traders and miners, but the companies that manufacture the necessary hardware to validate transactions on the blockchain. One such company is Nvidia which is also listed in the US Stock markets. 55% Drop in Value in 3 Months Three months ago, on the Read more…

Cryptocurrency exchange Kraken has revealed that it has received three times more law enforcement requests in 2018 compared to 2017. The overwhelming majority of requesting authorities is in the US. A Chokepoint for Law Enforcement San Francisco-based cryptocurrency exchange Kraken has released an infographic displaying the increasing number of law enforcement requests received in 2018. Read more…